When it comes to the semiconductor industry, there are many areas of intrigue. Chip designers like NVIDIA (NASDAQ: NVDA) immediately come to mind, as well as fabricators like Taiwan Semiconductor Manufacturing (NYSE: TSM). The rise in Marvell Technology (NASDAQ: MRVL) shares over the past few months highlights the demand for customized chips. Another key area of this market is the companies that produce the equipment needed to actually put these chips together.
Fabricators like TSMC buy this equipment from firms that make tools for specific steps in the process. This places these firms near the beginning of the semiconductor value chain. As such, they feed into this complex ecosystem, which is an essential part of its proliferation. I’ll detail two semiconductor equipment stocks that may be gearing up for a big year in 2025. All return, valuation, and implied upside figures are as of the Dec. 11 close.
